HomeMy WebLinkAbout2006-155 Hangar Agrmt - Civil Air Patrol
HANGAR LEASE AGREEMENT
FOR THE ASHLAND MUNICIPAL AIRPORT
Lease made this 151 day of April, 2006, between City of Ashland ("City") and the Oregon Wing of the Civil
Air Patrol, Inc., an auxiliary of the United States Air Force ("Lessee").
RECITALS:
A. City is the owner of the Ashland Municipal Airport (further referred to in this lease as "the Airport").
B. Lessee desires to lease a portion of the airport for the purposes described below.
City and Lessee agree:
1 Description of leased premises. City shall lease to Lessee that portion of the airport described in
the attached Exhibit "A". Unless from the context a different meaning is intended, the term "property"
refers to unimproved real property, and the term "premises" refers to the real property and any
improvements located or constructed for use during the term of this lease:
2 Term. The term of this lease is five years, commencing at 12:01 AM on the 1st day of April 2006.
3 Rental to City. Lessee agrees to pay the City during the term of this agreement, the following
sums and amounts:
3.1 The sum of $1.00 per year payable in advance.
3.2 In addition, it is understood and agreed that at the termination of this lease, or any subsequent
lease, the hangar presently owned by the Lessee and on the property will be removed by
Lessee.
4 Purpose. The Lessee shall use the premises solely for purposes related to or arising out of Civil
Air Patrol's three missions: Emergency services, aerospace education, the cadet program, and any
activity in support of federal, state and local agencies.
4.1 Use of hanoar. CAP will monitor hangar use and meet CAP Wing Requirements. Any aircraft
in the CAP hangar will be subject to the usual Ashland Airport tie down rate except for:
a) aircraft used by CAP at Ashland Airport during an emergency action (Le. search and
rescue)
b) CAP owned aircraft stationed at the Ashland airport.
c) Radio. Lessee may maintain and operate such radio equipment as it deems necessary to
function as a search and rescue and training facility, provided that all radio equipment is
operated under the rules of the FCC, FAA, and the rules of the City of Ashland as they
may now exist or hereinafter be adopted.
d) Commercial activities prohibited. Lessee shall not engage in any commercial activities,
but may perform maintenance on its own planes and equipment.
e) Competition with FBO prohibited. Lessee shall not engage in any activities permitted by
any fixed base operator by its lease with the City of Ashland, unless otherwise permitted
by this lease.
f) Fund-raisino prohibited. Lessee shall not engage in fund-raising activities of any kind
whatsoever on the property or at the airport without the written consent of the City first
being given in advance.
Violation of any of the provisions of this paragraph will result in the Lessee being subject
to forfeiture of the lease.
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g) StoraQe of fuel prohibited. Lessee shall not store aviation fuel or other flammables on the
premises.
5 Insurance. Lessee shall obtain and maintain continuously in effect at all times during the term of
this agreement, at Lessee's sole expense, the following insurance:
5.1 Comprehensive insurance. Comprehensive general liability insurance protecting City and its
officers, agents and employees against any and all liabilities from the negligence of CAP, its
officers, employees, agents, contractors or volunteers, relating to the use of the leased
premises, this insurance to be in the minimum amount of $500,000, combined single limit
coverage.
5.2 Additional insureds. All policies shall include the City, its officers, commissions, elected
officials, employees and agents as additional insureds.
5.3 Insurance certificate. A certificate evidencing such insurance coverage shall be filed with the
City prior to the effective date of this agreement, and such certificate shall provide that such
insurance coverage may not be canceled or reduced or changed in any way adverse to the
City without at least 30 days prior written notice to the City. The policy shall be continuous
until canceled as stated above. If such insurance coverage is canceled or changed, Lessee
shall, not later than 15 days prior to the termination or change in the insurance coverage, file
with the City a certificate showing that the required insurance has been reinstated or provided
through another insurance company or companies. In the event Lessee shall fail to furnish
the City with the certificate of insurance required, City may secure the required insurance or
self-insure at the sole cost and expense of Lessee, and Lessee agrees to reimburse City
promptly for the cost, plus ten percent of the cost for City Administration.
6 Indemnification. CAP agrees to indemnify, hold the City harmless, and, at City's election, defend
the City from any claims, actions, liability, or costs, including attorney fees and other cost of defense,
arising out of or in any way related to the activities performed under this agreement by CAP, its
officers, employees, agents, contractors and volunteers, and arising from the sole negligence of CAP,
its officers, employees, agents, contractors or volunteers.
7 Compliance with laws. The Lessee shall comply with all State and Federal rules, including but not
limited to, the effluent standards or prohibitions established under Section 307(a) of the Clean Water
Act for Toxic Pollutants.
7.1 Compliance with Minimum Standards. Lessee shall comply with the "Oregon Department of
Aviation Minimum Standards" dated April 17, 2002 adopted by the City Council on June 21,
2002 (further referred to in this agreement as "the Minimum Standards") as they now exist or
as they may be changed in the future.
7.2 Noise Impact. Due consideration for the noise impact on the community surrounding the
airport will be given by the Lessee in the selection of aircraft and related activities, all in
accord with the laws, rules and regulations and ordinances of the City of Ashland as they now
exist or as they may be changed in the future.
7.3 ConflictinQ Standards. In the event the above standards conflict with the provisions of the City
or other applicable local, state or Federal regulatory agency, the most restrictive standard
shall be applied.
8 Lessee compliance with environmental laws.
8.1 Definition of "hazardous material". As used in this paragraph, the term "hazardous material"
means any hazardous or toxic substance, material, or waste, including, but not limited to
those substances, materials, and wastes listed in the United States Department of
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Transportation Hazardous Materials Table (49 CFR ~ 172,101) or by the United States
Environmental Protection Agency as hazardous substances (40 CFR Part 302) and any
amendments, ORS 466.567, 466.205, 466.640 and 468.790 and regulations of the Oregon
State Department of Environmental Quality, petroleum products and their derivatives, and
such other, materials and wastes as become regulated or subject to cleanup authority under
any environmental laws. Environmental laws means those laws cited in this subparagraph.
8.2 Lessee's compliance with laws and permits. Lessee shall cause the leased property and all
operations conducted on the leased property (including operations by any subtenants) to
comply with all environmental laws.
8.3 Limitation on uses of hazardous materials. Lessee shall not use or allow any agents,
contractors or subtenants to use the leased property to generate, manufacture, refine,
transport, treat, store, handle, recycle, release or dispose of any hazardous materials, other
than that reasonably necessary for the operation of Lessee's activities as contemplated under
this agreement.
8.4 City's Riahts. City shall have the right to conduct reasonable inspections and investigations of
the leased property and the operations conducted on the leased property at any time and from
time to time, and Lessee shall cooperate fully with City during such inspections and
investigations.
8.5 Indemnification. Lessee agrees to defend (with counsel approved by City), fully indemnify,
and hold entirely free and harmless City from and against all claims, judgements, damages,
penalties, fines, costs, liabilities, or losses (including, without limitation, diminution in value of
the leased property, damages for the loss or restriction on the use of rentable or usable space
or of any amenity of the leased property, damages arising from any adverse impact on
marketing of space, sums paid in settlement of claims, attorneys' fee, consultant fees, and
expert fees) which arise during or after the lease term and which are imposed on, or paid by
or asserted against City by reason or on account of, or in connection with, or arising out of
Lessee's generation, manufacture, use, transportation, refinement, treatment, storage, or
disposal of hazardous materials, or any release of hazardous materials as a result of Lessee's
use or activities, or of Lessee's agents, contractors, or subtenants.
9 Federal preeminence. All rights, privileges and liabilities imposed by this agreement are subject
and subordinate to any conditions, restrictions, limitations, rules, regulations or future requirements for
modification of this agreement, by any agreement or contract pertaining to the airport between the
United States Government or any other department or agency of either the United States Government
or the State of Oregon.
10 Minority Business Plan. The Lessee agrees to the terms and conditions of the City's adopted
Minority Business Plan currently in effect with the FAA and to be amended from time to time as
required by the FAA.
11 Termination. This agreement shall be terminated upon the following conditions:
11.1 Termination by Lessee. This agreement shall be subject to termination by Lessee in the
event of anyone or more of the following events:
a) The abandonment of the airport as an airport or airfield by the City.
b) The default by the City in the performance of any of the terms, covenants or conditions of
this agreement, and for the failure to continue for a period of 30 days after receipt of
notice from Lessee concerning the default, provided that if the remedy takes longer than
30 days, then the term of notice shall be so extended.
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c) Damage to or destruction of all or a material portions of the airport, and which are
necessary for the operation of Lessee's business, and election by City not to replace such
improvements within six months after destruction.
d) The lawful assumption by the United States, or any authorized agent of the operation,
control, or use of the airport, or any substantial part or parts, in such a manner as to
substantially restrict Lessee from conducting business operations for a period in excess of
90 days.
e) Any modification of the terms of this lease required as a result of paragraph 9.
11.2 Termination bv City. This agreement shall be subject to termination by City in the event of
anyone or more of the following events:
a) Failure to pay the basic or percentage fee or failure to pay any money due to the City as
set forth in this agreement.
b) The default by Lessee in the performance of any of the terms, covenants or conditions of
this agreement, provided that City gives Lessee written notice of the default, with
reasonable particularity, and Lessee fails to cure such default within 30 days. However, if
the default is of such a nature that it cannot be cured within 30 days, Lessee shall be
deemed to have remedied the default if Lessee commences action to remedy the default
in 30 days and thereafter proceeds with reasonable and in good faith to effect the remedy
as soon as practicable.
c) The filing of a voluntary petition in bankruptcy, including a reorganization plan, or filing in
Charter 11 of the Bankruptcy Act, and general or other assignment for the benefit of
creditors, or as adjudicated as bankrupt or if a receiver is appointed for the property or
affairs of Lessee.
d) The failure to conduct the business or to perform any duty required in Section 4.
e) If at any time during the term of this lease, the Lessee ceases to be active and to carry on
the functions described in this lease at the airport, and specifically on the premises and to
the full extent as is presently being done then the City shall have the right to immediately
terminate this lease.
12 Affirmative Action Proaram. The Lessee assures that it will undertake an affirmative action
program as required by 14 CFR, Part 152, sub-part E, to insure that no person shall, on the grounds of
race, creed, color, age, national origin or sex, be excluded from participating in any employment
activities covered in 14 CFR, Part 152, sub-part E. The Lessee assures that no person shall be
excluded on these grounds from participating in or receiving the services or benefits of any program or
activity covered by the sub-part. The Lessee assures that it will require that its covered sub-
organizations will provide assurances to the City that they similarly will undertake affirmative action
programs and that they will require assurances from their sub-organizations as required by 14 CFR,
Part 152, sub-part E to the same effect.
13 Public Facilities. The Lessee shall also have a non-exclusive right to use, in common with others,
all public airport facilities and improvements of a public nature which are now, or may in the future be
connected with, appurtenant to, landing, taxiing, parking areas, and other public use facilities.
14 Airport Closure. The City may choose to do construction work or maintenance work on portions of
the airport and accordingly the City may, when reasonable necessary, close the airport so that the
Lessee will be required to temporarily suspend activities and will not have ingress and egress to its
operation. Except in cases of emergency, City shall give Lessee 30 days notice of such closure.
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15 Improvements. alterations. maintenance:
15.1 Alternations or Improvements. Lessee may not make alteration or improvements without
the prior written consent of City, which consent shall not be unreasonably withheld. Prior
to any construction, construction plans must be approved by the City in writing as to the
physical and aesthetic design, site location, color, landscape design, parking, and land
use. All alterations or improvements that Lessee may desire to make to the premises
shall be done by Lessee and at the expense of Lessee. The term "improvements" means
any buildings, structures, or facilities placed or erected on the property. All such work
shall be done in a good and workmanlike manner in compliance with all applicable
building and zoning laws and ordinances.
15.2 Ownership of Improvements. Title to all improvem~nts of a permanent nature shall be the
property of the Lessee. Lessee shall remove all improvements upon expiration or
termination of the lease.
15.3 Maintenance and Repair. Lessee shall be responsible for maintaining and repairing the
premises and every part thereof, including but not limited to the foundations, exterior
roofs, and structural aspects of the premises. Lessee shall be responsible for Lessee's
use and its employees', agents', or invitees' use of the premises. Lessee shall, at the
expiration of termination of this agreement, surrender the premises in as good order and
condition as when received, reasonable wear and tear, damage from the elements, fire,
acts of God or other casualty excepted. Lessee shall be responsible and shall pay for all
damage or injury done to the premises by Lessee or any person who may be in or the
premises with the consent of Lessee.
15.4 Upkeep. Lessee shall keep the leased premises and buildings under its control clean and
in a neat condition. The premises shall be kept in good repair, free of waste material and
debris. Landscaping shall be maintained and properly watered in a reasonable fashion.
City reserves the right to conduct periodic on-site inspections to insure compliance with this paragraph.
16 Damaae or destruction:
16.1 Proceeds and Repairs. If the improvements are damaged or destroyed by fire or other
casualty, Lessee shall be required to repair and reconstruct the property and
improvements or remove remaining improvements and debris and restore the site to its
original condition. If Lessee elects the latter, this lease shall terminate 30 days after
Lessee makes such election.
Repairs, reconstruction, removal or restoration shall be accomplished by Lessee with all reasonable
dispatch subject to interruptions and delays from labor disputes and matters beyond the control of Lessee.
Nothing contained in this provision is intended to excuse Lessee's duty to repair pursuant to paragraph
15.3.
17 Utilities. Lessee shall make provision for and pay service and connection charges on all utilities
including sewer.
18 Assianment. Lessee shall not assign, partially assign, or sublet the premises and, in the event
any such assignment, partial assignment, or sublease is made, this lease may be immediately
terminated by the City.
19 Default. The following shall be events of default:
19.1 Rent Delinauencv. Delinquency in the payment of rent in excess of ten days beyond the
rental due date unless specifically extended in writing by City.
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19.2 Noncompliance. Failure of Lessee to substantially comply with any term or condition or
fulfill any obligation of this agreement (other than the payment of rent or other changes
within ten days) after written notice by City specifying the nature of the default with
reasonable particularity. If the default is of such a nature that it cannot be completely
remedied within the thirty day period, this provision shall be complied with if Lessee
begins correction of the default within the thirty day period and thereafter proceeds with
reasonable diligence and in good faith to effect the remedy as soon as practicable.
19.3 Liens. Failure to remove any lien or encumbrance placed upon the premises, except that
Lessee may in good faith object, on behalf of the City or itself, to the validity or amount of
any lien and may contest the validity or amount of the lien, provided City's interest in the
premises is not jeopardized.
19.4 Other events of default: The occurrence of any of the following events:
a) The making by Lessee of any general arrangement or assignment for the benefit of
creditors;
b) Lessee's becoming a "debtor" as defined in 11 USC 9101 or any successor statute
thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within
sixty days);
c) The appointment of a trustee or receiver to take possession of substantially all of Lessee's
assets located at the premises or of Lessee's interest in this agreement, where
possession is not restored to Lessee within thirty days; or
d) The attachment, execution of other judicial seizure of substantially all of Lessee's assets
located at the premises or of Lessee's interest in this agreement, where such seizure is
not discharged within thirty days; provided, however, in the event that any provision of this
subparagraph is contrary to any applicable law, such provision shall be of no force or
effect, and not affect the validity of the remaining provisions.
LESSEE: Civil Air Patrol, Oregon Wing
Bycr~fJt
Its: Oreoon Wino Commander
By:
Its:
CITY OF ASHLAND
-
-.-4
City Recorder
Approved as to Form
Oregon Wing Legal Officer
HANGAR LEASE AGREEMENT
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